Retail

Wall Street Analyst Upgrades Nike Stock Amid Kaepernick Ad Campaign

Nike

Following the release of Nike’s ad campaign with Colin Kaepernick, a Wall Street analyst said the move was “a stroke of genius.” Camilo Lyon of Canaccord Genuity also elevated the stock from a neutral to buy rating,  CNBC reported.

“We believe Nike’s new ‘Just Do It’ ad campaign with Colin Kaepernick was a stroke of genius,” Lyon said in a note. “This premeditated move was another subtle but significant sign of Nike’s strength and confidence in its position in the marketplace, one that likely does more good than harm.”

In terms of eCommerce, the company’s online sales skyrocketed following the campaign’s announcement. Edison Trends said that product orders jumped by 27 percent in the period spanning from Sunday to Wednesday over Labor Day weekend. By comparison, product orders dropped by 2 percent over the same time frame in 2017.

With 12 words, one photo and a tweet, Nike managed to capture the news cycle last week — and much of the market’s interest: “Believe in something, even if it costs you everything … Just Do It,” were the dozen words  over a photo of former San Francisco 49ers quarterback Colin Kaepernick. Kaepernick released a tweet announcing that he, along with athletes LeBron James and Serena Williams, would be the spokespeople for Nike’s 30-year anniversary “Just Do It” campaign.

Kaepernick’s relationship with Nike is not new, as he has been a client since 2011. But this week, his new multi-year contract gives him a coveted spot as a headliner on one of Nike’s “Just Do It” ad campaigns, as well as a branded line of Kaepernick shoes and apparel.

It was an announcement that clearly took the world by surprise, since Kaepernick is, in some senses, an unlikely choice: Kaepernick has not thrown a single pass in the NFL in two seasons and is currently involved in an active lawsuit with the NFL, as he alleges that he was blacklisted as a free agent for his choice to kneel during the national anthem. His choice to do so was in protest of police violence during the 2016 season.

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